Appendix TC-1 Qualifications and Core Competencies of Controlled Functions
| Role | Core Competencies | How can competence be demonstrated? |
| Board Member/Director | Board members should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) Sufficient experience to demonstrate sound business decision-making;
(c) Good understanding of the industry; and
(d) Good understanding of the industry’s regulatory environment.
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Competence could be demonstrated by:
(a) An academic degree from a university at bachelor level or higher and/or a relevant professional qualification.; and
(b) A minimum experience of 5 years in business and/or government/quasi government of which at least 3 years at a senior management level
OR
(c) A minimum experience of 7 years in business
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| Chief Executive or General Manager and their Deputies | The Chief Executive or General Manager and their Deputies should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) Strong understanding of the licensee’s business and the wider industry;
(c) Good understanding of the industry’s regulatory environment;
(d) Relevant experience and qualifications associated with such executive responsibilities; and
(e) The necessary technical, professional and leadership capabilities which qualify him for this position.
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Competence could be demonstrated by:
(a) A minimum experience of 5 years at senior management level in the financial industry and/or capital market industry; and
(b) An academic degree from a university at bachelors level or higher preferably MBA, Masters in finance/accounting/economics/management or in any other subject related to financial services industry and/or capital market industry in addition to professional qualification(s) related to financial services industry and/or capital market industry.
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| Chief Financial Officer/ Head of Finance | The Chief Financial Officer/ Head of Finance should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) Good understanding of business and the wider industry;
(c) Strong understanding of the industry’s regulatory environment;
(d) The relevant experience and qualifications to fulfil his responsibilities; and
(e) Strong knowledge and understanding of international accounting standards and how they are applied in a business context, including IFRS.
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The Chief Financial Officer/ Head of Finance should have:
(a) A minimum of 5 years of practical experience in a finance function; and
(b) An academic degree from a university at bachelor level related to banking/finance/accounting/economics or higher in addition to professional qualification(s) related to banking/finance/accounting/economics and other relevant certification(s) specific to this role. Such professional qualifications may include but are not limited to:
(i) Affiliate, The Association of Chartered Certified Accountants (ACCA);
(ii) Certified Public Accountant (CPA), The Association of International Certified Professional Accountants (AICPA);
(iii) AAOIFI’s Certified Islamic Professional Accountant (CIPA);
(iv) Associate Chartered Accountant (ACA), Institute of Chartered Accountants in England and Wales (ICAEW); and/or
(v) Chartered Financial Analyst (CFA).
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| Heads of other Functions | Heads of other Functions should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) Strong understanding of the licensee’s business and the broader industry;
(c) Good understanding of the industry’s regulatory environment; and
(d) The relevant experience and qualifications to fulfil their responsibilities.
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Competence could be demonstrated by:
(a) A minimum of 5 years of practical experience in a comparable function within the financial services and/or capital market industry; and
(b) An academic degree from a university at bachelor level or higher in addition to professional qualification(s) and other relevant certification(s) specific to this role. Such certifications may, depending on the function being fulfilled, include but are not limited to:
(i) Chartered Financial Analyst (CFA);
(ii) Certificate in Securities and Financial Derivatives;
(iii) Certificate in Investment Management;
(iv) Professional Certification in Accounting;
(v) Equivalent certificates or qualifications from the BIBF or other institutions; and/or
(vi) Securities Markets Regulation Certification
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| Compliance Officer | A Compliance Officer should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) An appropriate level of experience and standing to demonstrate suitable independence from other functions within the capital market Licensee;
(c) Good understanding of the industry; and
(d) Strong understanding of the industry’s applicable regulatory requirements.
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Competence could be demonstrated by:
(a) A minimum of 2 years of relevant experience in compliance in the financial services and capital markets industry, financial institution or financial market regulator;
(b) An academic degree from a university at bachelor level or higher in addition to professional qualification(s) related to accounting or finance and other relevant certification(s) specific to this role. Such professional qualifications may include but are not limited to:
(i) International Diploma in Governance, Risk and Compliance, International Compliance Association (ICA); and
(ii) International Advanced Certificate in Compliance and Financial Crime offered by the International Compliance Association; and/or
(iii) Any other relevant professional certification deemed suitable by the CBB.
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| Money Laundering Reporting Officer (MLRO) | The MLRO should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) Understand the business of the licensee and how the Anti Money Laundering framework applies to it;
(c) Demonstrate independence from the staff of the licensee who deal directly with customer; and
(d) A thorough knowledge of the financial industry and be familiar with relevant FATF and applicable domestic regulatory requirements.
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Competency could be demonstrated by:
(a) An MLRO should have a minimum experience of 2 years in anti-money laundering or anti-money laundering related role in the financial services industry.
(b) The MLRO should have:
(i) A degree from a university at bachelor level or higher or a relevant professional qualification; and
(ii) Relevant certification(s) specific to this role. Such certifications may include but are not limited to:
1) Certified Anti-Money Laundering Specialist Examination, Association of Certified Anti-Money Laundering (ACAMS);
2) Diploma in Anti-Money Laundering, International Compliance Association (ICA);
3) International Diploma in Financial Crime Prevention, International Compliance Association (ICA); and/or
4) International Advanced Certificate in Compliance and Financial Crime, International Compliance Association (ICA).
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| Registered Representative | The Registered Representative should have thorough understanding of:
(a) Regulatory framework and applicable rules and regulations;
(b) Ethical framework, duties towards customers and employer, disclosure of conflict of interest, preservation of confidential information, best trade execution practice and separation of customer and proprietary trading.
(c) Understanding of exchange trading and clearing process including order types and limits, margin requirements, execution strategies and trading cost.
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Competency could be demonstrated by:
(a) A Registered Representative should have a minimum experience of 2 years in financial markets. Relevant experience in capital markets is preferred; and
(b) A degree from a university at bachelor level or higher or a relevant professional qualification in accounting, finance, banking, or management. Such certification may include but are not limited to:
(i) General Securities Representatives Qualification (Series -7) by Bahrain Institute of Banking and Finance; or
(ii) Securities Market Regulation Certification Program (Series-79) by Bahrain Institute of Banking and Finance; or
(iii) Trading and Financial Market Analysis by Bahrain Institute of Banking and Finance; or
(iv) Certificate in Securities; or
(v) Certificate in Securities and Financial Derivatives; or
(vi) Certificate in investment management; or
(vii) Chartered Financial Analyst (CFA); or
(viii) Any other equivalent certification acceptable to the CBB
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| Chief Risk Officer/Head of Risk Management | The Head of Risk Management should have:
(a) A clear understanding of the role and responsibilities associated with this position;
(b) An appropriate level of experience and standing to demonstrate suitable independence from other functions within the licensee;
(c) Good understanding of the licensee’s business and the wider industry;
(d) Good understanding of the industry’s regulatory environment; and
(e) The relevant experience and qualifications to fulfill his responsibilities.
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Competency could be demonstrated by:
(a) A minimum of 5 years of practical experience in a financial institution of which at least 2 years in a risk management position within the financial market industry; and
(b) An academic degree from a university at bachelor level or higher in addition to professional qualification(s) related to risk management, accounting, finance or other relevant certification(s) specific to this role. Such certifications may include but are not limited to:
(i) Associate in Risk Management (ARM), The Institutes;
(ii) International Diploma in Risk Management, Institute of Risk Management qualifications (IRM);
(iii) Financial Risk Manager (FRM), Global Association of Risk Professionals (GARP); and/or
(iv) Professional Risk Manager (PRM), Professional Risk Managers’ International Association (PRIMA).
(v) Any other equivalent certification acceptable to the CBB
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| The Chief Information Officer/Chief Technology Officer/ or Head of Information Technology | The Chief Information Officer/Chief Technology Officer/ or Head of Information Technology should have:
(a) A clear understanding of the management information system used by the licensee;
(b) Ability to:
(i) effectively manage, monitor and control all aspects of the information system operations;
(ii) Ability to critically assess information system related issues and be able to come up with appropriate solutions to tackle the problem.
Strong technical and architectural skills along with knowledge of system analysis and design. |
Competency could be demonstrated by:
(a) A minimum experience of 5 years in the field of information technology.;
(b) An academic degree from a university at bachelor level or higher in information technology;, and
(c) Relevant professional qualification/certification information technology specific to this role.
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| Chief Information Security Office (CISO) | The Chief Information Security Officer should have:
(a) A clear understanding of the responsibility and accountability for effectively managing cyber-security threats;
(b) Ability to implement and oversee a cyber-security program and enforce a cyber security policy; and
(c) The relevant experience and qualification to fulfill his responsibilites.
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Competency could be demonstrated by:
(a) A minimum experience of 5 years in the field of information technology and cyber security.;
(b) An academic degree from a university at bachelor level or higher or relevant professional qualification in information technology, information security, cyber security or related field and
(c) Relevant certification related to cyber/information security, data privacy or other relevant certification(s) specific to this role.
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Added: January 2022